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CPI as if it were calculated using the methodologies in place in 1980.
Posted on 03/28/2008 10:24:39 AM PDT by BGHater
While Todd may be educable, I really doubt that you are.
Someone I trust said that when you decide on a new bank, check out the rate they offer on their savings accounts. If it seems high, then it’s a good bet they’re desperate for cash and you don’t want to be in that bank :)
Maybe a good seat-of-the-pants test...
Just read the article.
It looks like what severaal at Seeking Alpha and Minyanville are saying: An AAA or alt-a person in a home that they bought for $750,000 and is now worth $550,000 suddenly finds they owe an extra $200,000 that they can pretty much count on NEVER making up.
It is better to temporarily destroy your credit than carry that the rest of your life (and they will if they don’t walk away) as, basically, indentured slavery.
In fact, once they make that realization, they should stop making payments, period. Some are doing that in Florida in homes worth over $2,000,000 and sticking around for two years or more, rent free!
Imagine taking all the money you save in monthly payment and buying hard gold with it. Even if gold goes down, your relative position is phenominal compared to what it would have been if you kept making payments for the albatros you live in.
Have a great weakend, my FRiends!!!
I agree. It becomes a business decision.
But don’t conclude for a moment that in making “loans” to banks that the Fed is paying their rent out of your pocket. OOOOPS Sorry Toddster, there I go again, slandering your friends.
At 1% interest there is little use for a bank.
One stupid reason I still have most of my money in the stock market is due to something a guy said back in the 90’s. He said something along the lines of. “real estate and the stock market compete for the same investment dollars, so if one is perceived to be a bad place to put money, the other will rise in value.” It is why I went agressive with my 401k in stocks.
IOW, although I am very bearish about the overall economy, I would not be surprised if the dow did continue to go up, but then, that would be partially because the dollars in the market would be inflated.
But I suspect everything will go down.
Until Ronald Reagan, all presidents elected on a year with a zero in its rightmost digit died in office. So some actually thougth he would too. But he didn’t.
To quote a common phrase “past performance does not guarantee future performance.”
And although many see what is happening as an unravelling of a few years worth of up-cycle, I see it as an unravelling of over 50 years of bad economic practices.
I think this may be the one that has been coming since before WWII. Key word there is “may”.
You mean, other than a checking account ?
I agree - I wasn’t proposing opening a savings account, I was pointing out a potential indicator of distress at a bank.
I love you too Sunshine.
what could go wrong?.
Where, in the article, does it say that the Fed is giving anyone anything?
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CPI as if it were calculated using the methodologies in place in 1980.
When all is said and done there will have been averted a credit crisis that, had it occurred, would have taken under many other financial entities on Wall Street and would have turned your 401(k) into a 101(k).
The loans to the dealers will be repaid, the inter dealer lending market will unfreeze and the next wave of higher stock market and home prices will begin.
LOL!
Standby for being ridiculed by the permatouts for publishing this stuff. Of course it makes you ask why Greenspan decided to stop publishing M3.
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